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Based in Northbrook, Illinois, IDEX Corporation (IEX) provides applied solutions worldwide and specializes in a diverse range of applications, such as fluid and metering technologies, health and science technologies, and fire, safety, and other products. Valued at a market cap of $15.8 billion, the company serves various industries, including food and beverage, life sciences, and pharmaceuticals.
Companies worth $10 billion or more are generally considered "large-cap" stocks, and IDEX Corporation exemplifies this category, signifying its substantial size, stability, and influence in the specialty industrial machinery industry.
Its strengths lie in its robust product portfolio and strong market presence across various sectors, including industrial, fire and safety, life science, and water. This versatility fosters customer loyalty and reduces market volatility risks. Additionally, the planned acquisition of Mott Corporation highlights IDEX's commitment to enhancing its technological capabilities and expanding market reach, further strengthening its competitive position and creating new revenue opportunities.
Despite the notable strengths, shares of IDEX have dropped 15.3% from their 52-week high of $246.36, reached on Mar. 22. Over the past three months, IEX has surged 2.7%, underperforming the broader Dow Jones Industrial Average Index’s ($DOWI) 7.5% return over the same time frame.
However, in the longer term, IEX is down 3.9% on a YTD basis and has plunged marginally over the past 52 weeks. In comparison, the DOWI is up 11.6% in 2024 and 22.1% over the past year.
IEX has been trading above its 50-day moving average since early September but has been trading under its 200-day moving average since late May.
Shares of IDEX fell 5.9% in the following trading session after it announced its Q2 earnings release on Jul. 31. The company reported adjusted earnings of $2.06 per share, surpassing Wall Street expectations of $2.04 per share. However, the company’s revenue of $807.2 million missed the forecast of $830.8 million.
However, it successfully offset a 4% decline in organic net sales through effective price capture across all segments. Additionally, the company achieved an increase in gross margin, supported by strong price/cost management and improved operational productivity.
In the industrial sector, IEX faces significant competition, notably from Cummins Inc. (CMI), which has delivered a return of 28.7% over the past year and 32.4% in 2024, outperforming both IEX and DOWI.
Analysts are cautiously confident about IEX's prospects. The stock has a consensus rating of "Moderate Buy" from 11 analysts in coverage. The mean price target of $228.20 reflects a 9.3% premium over current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
